The Bank of Punjab (BOP) and InfraZamin Pakistan (IZP) have entered into a strategic Memorandum of Understanding (MOU) aimed at strengthening Pakistan’s agricultural warehousing infrastructure through a credit guarantee–backed financing framework. This initiative represents a significant move towards enhancing post-harvest storage capacity, mobilizing private-sector investment, and supporting long-term agricultural development in the country.
InfraZamin Pakistan, a pioneering credit enhancement institution jointly sponsored by InfraCo Asia Investments and Karandaaz Pakistan, provides local currency guarantee solutions to encourage private-sector participation in infrastructure financing. With its PACRA-rated long-term AAA and short-term A1+ ratings, InfraZamin continues to play a critical role in enabling sustainable, long-tenor funding for infrastructure projects that traditionally face limited access to institutional finance.
Under the newly signed MOU, The Bank of Punjab and InfraZamin will collaborate on the rollout of the Credit Guarantee–Backed Warehousing Infrastructure Financing Scheme, which seeks to facilitate the construction, expansion, and modernization of agricultural storage facilities nationwide. Through this partnership, BOP is being positioned as a key Participating Financial Institution capable of channeling long-term, local-currency financing to warehouse operators, farmers, and agri-value chain players.
Speaking at the signing, the Group Chief Consumer Banking Group of BOP emphasized that this collaboration will materially enhance the banking sector’s capacity to lend in segments that have previously been perceived as high-risk. He highlighted that InfraZamin’s credit guarantee structure will allow financial institutions to confidently extend credit to warehousing and storage infrastructure by mitigating underlying risk exposures. He noted that this partnership is expected to expand the overall risk appetite of banks, enabling them to support long-tenor agricultural projects that were historically constrained by financing limitations and risk barriers.
Amir Masood Chief Investment Officer of InfraZamin Pakistan remarked on the occasion “Our collaboration with the Bank of Punjab marks a significant milestone in expanding structured and affordable financing for Pakistan’s agriculture sector. This MOU aligns with the national agenda of modernizing the agriculture sector, improving post-harvest management and empowering farmers through better access to finance. Through InfraZamin’s credit enhancement, BOP will be able to confidently scale warehousing finance and support the development of modern, accredited storage infrastructure across the country.
The Bank of Punjab reiterated its commitment to supporting sustainable agricultural development and improving Pakistan’s food security landscape. By enabling access to modern, scientific storage facilities, the collaboration aims to reduce post-harvest losses, enhance commodity preservation, and create an enabling environment for private-sector investment in the agriculture value chain. The initiative also aligns with national efforts to strengthen warehousing practices, with benefits flowing directly to farmers and rural communities.
The MOU lays the foundation for deeper cooperation between the two organizations, with a formal Master Guarantee Agreement to be finalized in subsequent stages as the program advances. “
